House Price Survey report

April 4, 2008 · Filed Under Market Trends and St. John's Real Estate 

Canada’s real estate market stands on stable footing. On average, healthy year-over-year house price gains were recorded during the first three months of 2008. While more modest price increases were observed when compared to previous quarters, the solid appreciations noted in the first quarter are largely due to the shared effects of resilient local economies, high immigration levels, and relatively low interest rates – all leading to enduring buyer demand, according to a House Price Survey report released yesterday by Royal LePage Real Estate Services.

We know now that the Canadian real estate market has followed a markedly different path from that of the United States. Our tiny subprime mortgage market has exposed us to very few of the pitfalls that have created the unfortunate chaos south of the border. While Canada will not escape the negative impact of a troubled American economy, Canadians’ home equity should remain safe.

Thriving Saskatoon saw appreciation as high as 66 per cent, while areas in Newfoundland posted increases above 20 per cent for the first time since they started tracking house prices.

In St. John’s, the prospect of becoming a “have” province by 2009, as well as the provincial government’s announcement of an $881 million surplus triggered a rise in average house prices during the first quarter. Further expansion of Husky Oil’s White Rose project and potential development of a nickel deposit in Southern Head led to a rise in consumer confidence and double-digit house price increases, as the shift towards a sellers market continued throughout the city. Winter – which is typically a slower period for home sales in the St. John’s real estate – did little to decrease market activity in the first quarter. A shortage of desirable property listings, immigration and new listings lasting no more than two days on the market continue to characterize a market that is building on momentum created in 2007.

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Comments

One Response to “House Price Survey report”

  1. Rob Lawrence on April 8th, 2008 3:51 pm

    Very interesting survey. It’s nice to see our neighbors to the north are in the same development phase as we are. Just goes to prove that real estate is cyclical no matter where you live.
    Warm Regards,
    Rob Lawrence
    http://www.battlecall.com

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